Controversial Growth Tactics

Shaan Puri reflects on the ethical compromises startups sometimes make in their early stages to gain traction, drawing from his experience with Martin Shkreli using his platform Blab.

Key Points:

• Early Stage Growth Tactics:

  • Many successful companies started with controversial or questionable methods
  • Examples cited:
    • Bitcoin initially grew through Silk Road usage
    • Facebook started with "FaceMash" comparing student photos
    • Airbnb grew by scraping Craigslist and sending fake emails
    • YouTube began as a dating site

• Personal Experience with Controversial Users:

  • Had Martin Shkreli as a power user on Blab (video platform)
  • Despite Shkreli being "most hated man in America":
    • Drove hundreds of thousands of new users monthly
    • Created unprecedented engagement levels
    • Broke platform records with 5,000+ concurrent viewers

• Decision Making Process:

  • "I'm a startup, I'm gonna do what it takes to get off the ground"
  • Chose not to ban controversial users despite pressure
  • Prioritized growth over potential reputation damage

• Justification:

  • Early stage companies need momentum to survive
  • Clean-cut approaches often don't provide necessary growth
  • Companies can evolve their practices as they mature

• Perspective on Platform Responsibility:

  • Believes platforms shouldn't necessarily police controversial users
  • Values letting users make their own informed decisions
  • "The sun is the best disinfectant" - prefers bringing things to light over suppression

This point of view suggests that while early-stage growth tactics might be controversial, they're often necessary for startup survival, though companies typically evolve toward more conventional practices as they mature.